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LONDON (Alliance News) - Borders & Southern Petroleum PLC Monday said it will join a Falklands drilling consortium so it can participate in the 2015 drilling programme on the islands, as soon as partnering and funding has been secured for its licenses.
The company reported a pretax loss of USD933,492 for the six months ended June 30, narrowed from a USD3.4 million loss in the first-half of 2013.
The company does not currently generate any revenue, with the narrowed loss being attributed to paying no finance expense in 2014, compared to a USD2 million cost in 2013, accompanied by an increase of its finance income to USD731,505 from USD40,245.
Borders & Southern reported a cash balance of USD21.5 million at June 30, sufficient to cover forward overhead costs and all necessary short-term technical studies, it said.
The company holds a 100% equity interest and operatorship in three production licences in the Falkland Islands.
Detailed technical analysis of the Darwin East discovery continues, including the selection of potential appraisal well locations. Evaluation of nearby prospects is also underway. The next phase of the evaluation is to complete a detailed seismic reservoir characterisation study, using the well data to calibrate the seismic response. This work, currently in the planning stage, will continue through the fourth quarter of 2014, said the company.
In June, the company reported an estimate for its recoverable resource for the Darwin site (East and West combined), totalling 263 million barrels of condensate and a wet gas estimate of 2.6 trillion cubic feet.
"Our main commercial thrust has been to bring partners into our acreage. Discussions with companies continue, and our objective is to reach a conclusion so that we can participate in the 2015 Falkland Islands drilling programme that has been announced by other companies operating in the Falkland Islands. The conceptual well designs for an exploration and appraisal programme with associated logistical planning is in an advanced stage allowing us to join the consortium as soon as partnering and funding has been secured," said Chief Executive Howard Obee.
Borders & Southern shares dropped 8.1% to 9.88 pence per share by midday Monday.
By Joshua Warner; joshuawarner@alliancenews.com; @JoshAlliance
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